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erastova [34]
3 years ago
12

If the costs of health insurance paid by employers decrease, then the economy will experience a _____ shock. Please choose the c

orrect answer from the following choices, and then select the submit answer button. Answer choices negative demand negative supply positive demand positive supply
Business
2 answers:
maria [59]3 years ago
6 0

Answer:

The correct answer is letter "D": positive supply.

Explanation:

A supply shock occurs when an unexpected event changes the supply of a good or service which changes the price of that product. When the supply shock is positive, the supply increases and the price decreases. If the supply is negative, the supply decreases and the prices increase.

Thus, <em>if the costs of health insurance decrease, expecting an increase in the supply in health insurance, the supply shock will be considered positive.</em>

Scorpion4ik [409]3 years ago
3 0

Answer: The correct answer is POSITIVE SUPPLY.

Explanation: Supply Shock is an even that suddenly results in an unexpected increase or decrease in supply of goods and services. For example, a steep rise or fall in oil prices.

Supply shock is said to be negative when it results in a decrease in supply and positive when it results in an increase in supply.

If the costs of health insurance paid by employers decrease, it shifts the short-run aggregate supply curve to the right making it a POSITIVE SUPPLY.

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Recently many large commercial and retail banks have been choosing to increase the amount of excess reserves they hold in the Fe
xenn [34]

Answer:

A. True

Explanation:

Large commercial and retail banks have been choosing to increase the amount of excess reserves they hold in the Federal Reserve, and this has caused an increase in the money multiplier and the money supply.

This is true as an increase in the Federal reserves would lead to increased room for loan and lending facilities which would also help increase the money supply of the populace.

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The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put
lorasvet [3.4K]

This question is incomplete, the complete question is;

We will derive a two-state put option value in this problem.

Data: S₀ = 106; X = 112; 1 + r = 1.12. The two possibilities for ST are 149 and 75.

The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put

Answer: the hedge ratio of the put H = - 1/2 ≈ - 0.5

Explanation:

Given that;

S₀ = 106, X = 112, 1 + r = 1.12

Us₀ = 149 ⇒ Pu = 0

ds₀ = 75 ⇒ Pd = 37

To find the Hedge ratio using the expression

H = Pu - Pd /Us₀ - ds₀

so we substitute

H = 0 - 37 / 149 - 75

H = - 37/ 74

H = - 1/2 ≈ - 0.5

3 0
3 years ago
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